Tuesday's Asia ADR Recap: Cogo Group

Stocks in Indian rose sharply on Tuesday, led by banking and realty shares on reports that advanced tax collections for the April-to-June period are up significantly.

According to the Economic Times, India's biggest mortgage player, Housing Development Finance, announced that its tax payments jumped 47%, ICICI Bank(IBN Quote) saw its payments surge 36%, the State Bank of India said payments soared 32%, and HDFC Bank(HDB Quote) paid 40% more.

Short-covering propelled Indian shares higher as analysts perceived the jump in tax collections as a precursor to stronger corporate earnings reports for the upcoming June period. However, some market observers in the region said the fundamentals didn't support strong earnings, and the market moved up on light volume.

"This is clearly a relief rally, as the combination of macroeconomic factors -- inflation, price of oil, value of the rupee, high interest rate scenario and possibility of another hike, amid a dip in economic growth is lethal. And even the slightest negative news from markets overseas will aggravate the situation. I see no reason for this rise except the possibility of some manipulation," said Daljeet Kohli, head of research at Emkay Share and Stock Brokers. ...